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(b) There is still a transitional period of 11

years. The prevailing situation in Hong

(c)

Kong has also to be taken into consideration

even though it is in the final years of the transitional period. We cannot fix everything by means of the Basic Law. You have expressed

very good views and ideas and we shall adopt

them as far as possible. We have to decide

what we can do now and what have to be left

to the future SAR Government. At present,

the Central Government should not act for the

SAR Government. Otherwise, some people would say that we are intervening in breach of the

Joint Declaration. It is no good for us to intervene in these 12 years. But, if something goes wrong in the future, it would be difficult to identify who is to bear the responsibility. It is clearly stated in the Joint Declaration that Hong Kong will continue to be administered by the British in these 12 years. We are deter- mined to comply with the Joint Declaration. You

have to go on to put forward your views, parti- cularly to the working groups that are going to visit Hong Kong.

It is very difficult to give firm replies to these problems. Regarding the future ones,

we are not so clear; as for the present ones, we can help only by putting forward our views. ¡As regards the linkage problem, i.e. compatibility

of political reforms with the Basic Law,

it can be resolved only through consultations between China and Britain. As we have already reached an agreement on the future of Hong Kong, I don't think we have difficulty in settling this problem. We have to take the interents of

the whole into consideration as it is both

CONFIDENTIAL

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